Investment
Investment fraud involves complex financial crimes often characterized as low-risk
investments with guaranteed returns. They comprise of advanced fee frauds, Ponzi
schemes, pyramid schemes, market manipulation fraud, real estate investing, and
trust-based investing such as cryptocurrency investment scams. More than 6,400
complaints from individuals over the age of 60 reported losses over $1.2 billion to
these schemes.
Most cryptocurrency investment scams are socially engineered and trust-enabled, usually initiating
through a romance or confidence scam, and evolving into cryptocurrency investment scam. Criminals
often target individuals using dating applications, social media platforms, professional networking
sites, or encrypted messaging applications. Criminals use fictitious identities to develop relationships
and establish rapport with targeted individuals.
IC3 publications in 2023 Related to Investment Fraud
• The FBI Warns of a Spike in Cryptocurrency Investment Schemes
• FBI Guidance for Cryptocurrency Scam Victims
• Increase in Companies Falsely Claiming an Ability to Recover Funds Lost in Cryptocurrency
Investment Scams
• Criminals Pose as Non-Fungible Token (NFT) Developers to Target Internet Users with an Interest
in NFT Acquisition (ic3.gov)
Confidence/Romance Scams
Confidence/Romance scams encompass those designed to pull on an individual’s
“heartstrings”. In 2023, the IC3 received reports from 6,740 individuals over the age
of 60 who experienced almost $357 million in losses to Confidence/Romance scams.
Romance scams occur when a criminal adopts a fake online identity to gain an
individual’s affection or confidence. The scammer uses the illusion of a romantic or
close relationship to manipulate and/or steal from an individual. The criminals will seem genuine,
caring, and believable, with the intent to quickly establish a relationship and endear themselves to
someone. They gain trust and eventually will ask for money. Scam artists often claim to be serving in
the military or employed in a trade-based industry engaged in projects outside the U.S. This makes it
easier to avoid meeting in person, and more plausible when they request money be sent overseas for
a medical emergency or unexpected legal fee.
Also contained within this category are Grandparent Scams, which occur when a criminal impersonates
a panicked loved one, usually a grandchild, nephew, or niece of an older person, and claims to be in
trouble and needs money immediately. In 2023, the IC3 received over 200 complaints from people
over the age of 60 reporting Grandparent Scams, with approximate losses of $2.3 million.
Sometimes, confidence/romance scams can evolve into sextortion if the individual has provided illicit
pictures to the scammer. In 2023, complainants over the age of 60 reported 3,318 sextortion
complaints with reported losses over $6 million.